Scentre Group announce six month profit of $617 million

Scentre Group announce six month profit of $617 million
Scentre Group announce six month profit of $617 million

Scentre Group today announced its results for the six months to 30 June 2016, with Funds From Operations (FFO) of $617 million.

The profit represents 11.61 cents per security and distribution of 10.65 cents per security, keeping them on track to deliver its full year forecast FFO growth.

The full year forecast FFO growth was around 3 percent, with forecast FFO of 23.25 cents per security and forecast distribution of 21.3 cents per security.

“We are pleased with these half year results which reflect the benefits of focussing on the highest quality shopping centres in Australia and New Zealand," said Scentre Group CEO Peter Allen.

"Our portfolio is well positioned to continue to deliver long term growth”.

Comparable net property income increase 2.6 percent for the six months, driven primarily by contracted rent increases.

“Our shopping centres continue to experience strong demand from retailers, demonstrating the benefits of the high sales productivity across the portfolio” Peter said. 

Scentre Group announced earlier this month that it had purchased the David Jones Market Street building in Sydney's CBD with Cbus Property.

When completed, Scentre Group will own the redeveloped retail site, adding an additional 10,00 sqm of luxury retail space.

“Having completed the acquisition of the adjacent David Jones building, we have the unique opportunity to expand Westfield Sydney, which has the highest specialty sales productivity in Australia, reinforcing the precinct as Sydney’s luxury retail destination” Peter said.

During the half, the Group commenced $605 million of developments including projects at Westfield Chermside, Queensland, Westfield North Lakes, Queensland and Westfield Whitford City, Western Australia. 

The Group owns and operates interests in 40 Westfield shopping centres, including 16 of the top 25 performing centres in Australia, and has assets under management of $43.3 billion.  

Scentre Group has a strong balance sheet with gearing of 33.7% at 30 June 2016. 

 

Tags: 
Retail Market Profit Growth

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